1. If future inflation rate is expected to decrease the shape of the yield curve will be
1) downward sloping
2) upward sloping
3) U-shaped
4) Concave
2. Fix it corp. is going to pay .50, .80. and 1.20 a share over the next three years, respectively. After that, the company has stated that the annual dividend will be $1.40 per share indefinitely. What is the stock woreth to you per share if you demand a 11.4 percent rate of return on stocks of this type?
a) $10.15
b) $12.28
c) $6.53
d) 9.75
e) 10.84